Question

A company determined that the marginal​ cost, Upper C prime (x )of producing the xth unit of a product is given by Upper C prime (x )equalsx Superscript 4minus2x. Find the total cost function​ C, assuming that​ C(x) is in dollars and that fixed costs are ​$6000.

Answer 1

C(x) = 0.2x^5 - x^2 + 6000

Explanation:

Given in the question are restated as follows:

Marginal cos = C'(x) = x^4 - 2x ...................... (1)

Note that marginal cost (C'(x)) refers to the change in the total cost (C(x)) as a result of one more unit increase in the quantity produced. That is, MC refers to the additional cost incurred in order to produce one more unit of a good.

Therefore, TC can be obtained by integrating equation (1) as follows:

C(x) = ∫C'(x) = ∫[x^4 - 2x]dx

C(x) = 1/5x^5 - 2/2x^2 + F ................................ (2)

Where F is the fixed cost. Since the fixed cost is given as $6,000 in the question, we substitute it for F into equation (2) and solve as follows:

C(x) = 0.2x^5 - x^2 + 6000 ......................... (3)

Equation (3) is the total cost function​ C.